What falling off the "fiscal cliff" means for you - WGEM.com: Quincy News, Weather, Sports, and Radio

What falling off the "fiscal cliff" means for you

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QUINCY, Ill. (WGEM) -

The fiscal cliff deadline is three days away and if the U.S. Congress doesn't reach a deal in time, it could affect your paycheck.

For most of us, Friday means payday and many of us budget our paychecks for bills and other expenses. But, as early as next week, Congress could take a big bite out of how much you take home every week.

"Until it actually starts to take affect, it's pretty hard to speculate. So, I think most of us are waiting to see what that effects going to be and how much it's going to amount to," said Quincy Resident Jim Sours.

If you're not paying attention to the fiscal cliff, financial experts say you probably should, because no matter what your tax bracket is you will feel the brunt of tax hikes.

The Tax Policy Center says:

  • Americans who make less than $20,000 a year, would lose $590 a year.
  • Middle-income folks, who earn between $40,000-$64,000 a year, would take a cut of $2,000.
  • And that one percent, who earn more than $108,000 would lose nearly $13,000.

"If they don't get a deal done then the new taxes will affect everybody. And, the whole point is...Why increase taxes on everybody at a point when our economy is already very fragile"? said Wealth Management Specialist Mark Schlipman.

And, to top it all off www.talkingpointsmemo.com says on average, workers would lose $40 per paycheck.

"A person in, let's say Quincy, that's bringing home $100 a week or lets say $500 a week, that extra 2 percent could almost be a tank of gas," said Schlipman.

"It means an adjustment in the household budget," said Sours.

Schlipman says to have a financial plan in place just in case lawmakers don't hammer out a last-minute deal in time.

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